Continue if you wish and can find a PVR-USB2, they are a very rare find now!

Thanks to Charles G4GUO and Brian G4EWJ for the software bit, this is still work in progress but functionality has been proved.
MK808 has had kernel replaced with linux one.
SD card has been installed with picuntu linux including pvr/ftdi drivers, scripts,DVB-S generating software.
Plug it in and go!

The improved version with controller is now getting near completion so a replacement pic control board will be needed if you already use one for the Ultram VCO control.

Photos of current system:

MK808 + DigiLite (dev version!) + Controller

Display

System Diagram

MK808/DigiLite 'test' release for you all to play with!

Current problems are with Poor PCR timing related to the PVR and the Linux driver.... this means that one most receivers there are glitches/frame jumps etc... this is minimal on Newer receivers but some old ones will not decode very well at all.
Works without any noticable problem on Comag SL100HD, very well on Technomate TM-1500, Comag SL40,SL25... more jumpy video seen on SL65 but quite usable.
Sometime i have found the SD Card mode does not initialize but starts ok once rebooted.. not found the bug yet!

It is still buggy so if you find a problem with the controller sequence please let me know: rob /at/ m0dts.co.uk

As of 28th Dec 2013 it works with the PVRUSB2 24xxx AND 29xxx models, HVR1900, WinTV-HVR-1950. If you need NTSC then PVR-USB2 Model 99016 and 24022 models have been confirmed to work.

What you will need:
MK808, 2GB or more Micro SD card, PIC16F876 for Control board (See schematic)
(Colin has tested MK808B and UG802 and confirmed they work too but the install/connection method maybe slightly different)

Basically you need to install the Picuntu Linux Operating system files onto a SD card and replace the Boot kernel on the MK808 with a Linux one using the tool below.

The controller board is needed for the following activities: (see link below for how to use without a controller!)
Setup the DigiLite SR/FEC
Setup the PVR encoder settings based on the SR and FEC
Select SD card or Live data mode on the DigiLite
Setting of the Ultram VCO Frequency (23cm version only at present)

You can probably re-compile the code to run on a much cheaper 16F886 which is pin compatible but i have not tried it yet...

The controller is used in between the original data path of the second half of the FT2232 module, we need to cut the connections of these two tracks and then connect the control board serial header to the four pins marked on the board to allow it to communicate with the MK808 and the DigiLite.